Marketing: Laura Radewald "Mobile Engagement"


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  • Dunn bros historyChief marketing techonologist - turned my office into a laboratory.
  • Somewhat of a case study. We have a list of serious issues to address. We’ve implemented a solution and have some early results to share that I hope will change the way you think about loyalty programs.
  • The answer that the vast majority of marketing experts would give to this question is no. Of course not. I am here to make the argument that the loyalty programs of today have a better shot at that than the card based programs of the past. I will share some data to demonstrate that we are headed down that road. For most organizations, the loyalty pyramid looks like the image above.  From a loyalty perspective, most of the customers are behaviorally loyal.  They are there because they are ‘stuck’ to the company due to barriers.  These barriers are price, location, convenience, etc.  A smaller percentage of customers is made up of the attitudinally loyal customers.  These customers like the company, and prefer it, but are willing to switch.  Yet even a smaller percentage of customers are the emotionally attached.  These customers are the most profitable, but they form a very small percentage of the total customers a firm has.  Most of the organizations, I would guess around 99.99% of the companies across the globe, would fall somewhere in this model.  
  • I don’t think of this as an app or mobile payments or a loyalty program. It’s our opportunity to put our brand in our customer’s pocket. Speed to market – white labeled Level Up
  • Re –engagementDaypart Shift Customer FeedbackGifting
  • Over hurdle#1 the app has high repeat usage. In a category that people are passionate about - with a very short purchase cycle and few substitutes – putting an app in your customers hand can be a powerful Tool for growing the business and deepening the brand relationship.
  • Demographic shift44+ audience have no problem downloading an app now though
  • Franchisees need a sense of control.Stories just as good as dataExtreme differences between store locations. If we hadn’t tested in 4 stores in different markets might have drawn different conclusions about customer readiness that were really more do to execution at the store level and deepness of existing customer relationships.Market One – download as expression of existing love - customer guilt re: rewardsMarket 2 – Hoping to win preference and help franchisee establish love over time.
  • Argument against traditional loyalty programs is that they are only able to increase the size of the behaviorally loyal segment.We are already seeing customers buy a broader range of products from us. They are going out of their way to tell others, and through the experiences we can offer them within the app – i.e. a roasting experience for you and 4 of your friends – we are deepening their understanding of our key point of differentiation – and deepening our relationship with them. The POS data enables to offer experiences like this that are relevant to them. If they’ve never purchased a bag of beans from us..the offer would be different – a cup with their name on it? Free refills? For some of our franchisees a large proportion of their customers are already at the top of the pyramid. For them downloading and using the app is way for them to express their love and more easily share it with others. Giving these people more options to share not just the app – but the experience in-store – a reserved table for their book club. Gifting functionality. Are all ways for us to “activate” our biggest advocates. We’re fighting every day for that visit. We’re competing not only with starbucks and caribou but Dunkin Donuts who is planning a westward expansion – 7 Eleven – Holiday stores who have free coffee every Tuesday. We need to win out – get the customers inside our store so we can have a chance to win them over…At worst this is one more tool in the chest to help us move people up the traditional pyramid. If we excute this correctly and of course continue to deliver an outstanding in store experience I believe this will be the tool that flips our pyramid upside down.
  • Marketing: Laura Radewald "Mobile Engagement"

    1. 1. The Power of Linking Mobile Payments and Loyalty Laura Radewald CMO, Dunn Bros Coffee
    2. 2. Laura Radewald Linking Mobile Payments and Loyalty
    3. 3. Issues: ● ● Struggling to generate trial of new menu items ● Aging customer demographics ● Franchisee disdain for discounting ● Laura Sunsetted card-based loyalty program in 2011 Impacted customer counts and share of wallet Intensifying competition and category commoditization Radewald Linking Mobile Payments and Loyalty
    4. 4. Can a loyalty program create true loyalty ? Osman Khan PHD, Univerity of East London Laura Radewald Linking Mobile Payments and Loyalty
    5. 5. The mobile extension of our brand • • • Tied to POS system for better data Lowers interchange fees for franchisees Speeds check out process • Enables deeper brand engagement Laura Radewald Linking Mobile Payments and Loyalty
    6. 6. Sharing Values Laura Radewald Linking Mobile Payments and Loyalty
    7. 7. Sharing Friends Laura Radewald Linking Mobile Payments and Loyalty
    8. 8. Personalized and Relevant Rewards Laura Radewald Linking Mobile Payments and Loyalty
    9. 9. Daypart Campaigns Laura Radewald Linking Mobile Payments and Loyalty
    10. 10. Customer Feedback Laura Radewald Linking Mobile Payments and Loyalty
    11. 11. Early Results ● 1200 app downloads – 873 users across 4 locations in first 7 weeks ● 2:1 iPhone vs. Android ● 7300 Transactions ● 88% Repeat Customers ● Avg. # Uses - 7 times Laura Radewald Linking Mobile Payments and Loyalty
    12. 12. Early Results Average ticket for App customers is: + $.71 vs. avg credit card sale +$1.31 vs. avg cash sale Laura Radewald Linking Mobile Payments and Loyalty
    13. 13. Demographics Laura Radewald Linking Mobile Payments and Loyalty
    14. 14. Trial of New Items Avg ticket : $4.87 Avg. After Reward 1 : $6.21 Avg. After Reward #2 : $6.85 ..
    15. 15. Treat Yourself” Behavior
    16. 16. Best Practices Franchisee buy-in and participation in setting campaign levels Enable non monetary brand-centric rewards Important to analyze data from multiple locations to fine-tune program Support at launch: people, incentives, training Laura Radewald Linking Mobile Payments and Loyalty
    17. 17. Desired Future State Osman Khan PHD, Univerity of East London Laura Radewald Linking Mobile Payments and Loyalty
    18. 18. Available for iPhone and Android Live in all 82 locations by year end. Check “shops” tab within the app for live locations Laura Radewald Linking Mobile Payments and Loyalty